Location: Reno, NV | Metro: Reno, NV HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,540 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,760 | $211,504 | 0.83% | C |
| 2BR | $2,210 | $454,456 | 0.49% | F |
| 3BR | $2,950 | $918,202 | 0.32% | F |
| 4BR | $3,420 | $1,348,534 | 0.25% | F |
| 5BR | $3,967 | $1,810,723 | 0.22% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 89511 in Reno, NV, might have several concerns regarding the feasibility of participating in the Section 8 housing program. Let's address these concerns with the available data.
The Fair Market Rent (FMR) for ZIP 89511 in fiscal year 2024 is set at $1960. This amount is intended to cover the average rent for a moderate-quality rental unit in the area. To determine if this FMR can cover the mortgage on a $1,112,453 home, we need to consider the mortgage payment, which includes principal, interest, taxes, and insurance. For a home valued at $1,112,453, assuming a 20% down payment and a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment would be approximately $4,400. The FMR of $1960 falls short of covering this mortgage expense, indicating that relying solely on Section 8 payments would not be sufficient for such a high-value property. However, it's important to note that the value of homes in ZIP 89511 may vary widely, and lower-priced homes could be more feasible for Section 8 participation.
The rental demand in ZIP 89511 is indicated by the percentage of renters, which stands at 30.7%. While this figure suggests a significant portion of the population seeks rental accommodations, it does not provide insight into the specific demand for affordable housing units covered under the Section 8 program. A more detailed analysis of local rental trends and the number of households applying for Section 8 assistance would be necessary to fully assess the demand for these units. Nonetheless, the presence of a substantial renter base indicates potential interest in affordable housing options.
The market rent for ZIP 89511 is $1,978, slightly above the FMR of $1960. It is critical to understand how voucher amounts adjust over time to ensure they remain competitive with market rates. Typically, voucher amounts are reviewed annually and adjusted based on the local cost of living and housing market conditions. If the voucher program fails to keep up with the increasing market rents, landlords might find it challenging to maintain properties at a profit. Therefore, continuous monitoring of voucher adjustments and market rent trends is essential for landlords and small-portfolio investors.
In conclusion, while the data provides some insights into the viability of investing in ZIP 89511 through the Section 8 program, it also highlights areas where further investigation is required. Specifically, the gap between the FMR and mortgage payments on higher-valued properties, the precise demand for Section 8 units among the broader renter base, and the ongoing adjustment of voucher amounts to match market rents are key considerations for potential investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.